United Arab Bank revealed net profit results (after taxes) of 68 million dirhams in the first quarter, compared to net profits of 55 million dirhams in the same period in 2023, representing an annual increase of 25%. Total income increased by 33% compared to the same period last year, reaching 163 million dirhams.
Net profits (before taxes) amounted to 75 million dirhams, an increase of 37% compared to the first quarter of last year.
The annual return on shareholders’ equity improved to 15.4% compared to 14.7% in the first quarter of 2023.
Sheikh Mohammed bin Faisal bin Sultan Al Qasimi, Chairman of the Board of Directors of United Arab Bank, said: “We are pleased with the positive results for the first quarter of 2024, which reflect the bank’s success in effectively implementing its strategy by enhancing growth in the bank’s main sectors and following a wise approach to reducing risks. Total assets during the first quarter recorded 17.9 billion dirhams, net loans and advances and Islamic financing increased by 2%, and customer deposits increased by 4%. In addition, asset quality has improved further with the non-performing loan ratio decreasing to 4.8%, while the coverage ratio has improved to 127% compared to 7.8% and 102%, respectively, in the first quarter of 2023.”
He added: “Our goals and vision for United Arab Bank are consistent with the vision of the wise leadership in the United Arab Emirates and the country’s ambitious growth plans. We are well positioned to benefit from strong fundamentals and positive economic trends as we continue to accelerate actions to maximize growth.”
Total income increased by 33% compared to the first quarter of last year, reaching 163 million dirhams for the first quarter of 2024, compared to 123 million dirhams for the first quarter of 2023, driven by a 44% increase in net interest income compared to the same period of the previous year.
The growth in net profit comes as a result of the significant improvement in the bank’s total assets compared to the same period last year, coupled with cost management, a prudent approach to risk management, and strengthening the balance sheet with a focus on quality.
For his part, Shreesh Bedi, CEO of United Arab Bank, commented: “The growth in total net revenues and profits in the first quarter of 2024 is clear evidence of the success of the many initiatives that have been implemented at United Arab Bank. We will continue our efforts to achieve our ambitious vision and accelerate the pace of investment in the growth strategy, focusing on developing innovative products and services that meet all customer aspirations and adhering to the highest standards of compliance and internal controls.”